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I don't know. If true, it is a massive fuck up as you say.
And, @BrickMan says, it can't be cable steering in general as other bikes seem to do ok with it. Must be something to do with how it is executed in the P70.
From the comments on the german cargo bike forum it looks like the packster 70 will be discontinued. I'm really sorry to all those who will now miss out. I was also planning on buying one when they came back in stock here (Oslo) in the new year.
https://www.cargobikeforum.de/forum/index.php?threads/riese-müller-packster-70-2021.4049/page-107 [google translate]